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the S. and P. five hundred and the nasdaq finished Tuesday with their best close this ever start back at record highs rallying twenty five percent from their lows last year I'm coming is in New York there are a number of factors behind the stock market's slow climb back to record highs for the first time since September number one there's a general sense that the federal reserve is on hold for at least the rest of the year economic data has been encouraging like Tuesday's release of new home sales and most importantly there is a red leaf that earning season so far is not as dire as feared still profits of the S. and P. five hundred companies are expected to decline one point three percent in the first quarter and what analysts say could be the first earnings contraction since two thousand sixteen tally lose a is an equity strategist at Oppenheimer funds right here right now I think investors are beginning to differentiate between economic recession which we don't think is happening and earnings recession which also looks unlikely and a simple growth scare that seems the most likely scenario right now and earnings growth slowdowns are quite common we had one in the late nineteen nineties we also have one in two thousand fifteen sixteen the point is for long term investors those episodes proved to be buying opportunities investors had their fair share of positive earning surprises to spur buying on Tuesday Twitter posted a surprise gain a monthly subscriber numbers coca Cola benefited from strong demand for zero calorie drinks and a new flavors and Lockheed Martin so stronger sales after president trump relax the rules on foreign arms sales but earning season isn't over other big names to come this week include Amazon and Facebook